By Alisha Haridasani
After months of speculation, Goldman Sachs officially announced on Tuesday that David Solomon will succeed Lloyd Blankfein as chief executive ー the second transfer of power at the bank since it began trading as a public company in 1999.
Solomon, the bank’s president and a part-time DJ, will take the reins on October 1, and Blankfein will stay on as chairman of the board until the end of the year.
Blankfein worked with the bank for over two decades before he secured the top job in 2006. He steered the bank through the tenuous financial crisis and oversaw its latest efforts to enter consumer banking.
After a stint at Bear Stearns, Solomon joined Goldman Sachs’ investment-banking arm as a partner in 1999, shortly after the company went public, and became the group's head in 2006. In 2016, he ascended to co-president, alongside Harvey Schwartz.
"David is the right person to lead Goldman Sachs," Blankfein said in a statement. "He has demonstrated a proven ability to build and grow businesses, identified creative ways to enhance our culture and has put clients at the center of our strategy."
The announcement came the same day Goldman reported second quarter earnings. The company generated a better-than-expected $2.6 billion profit and a 19 percent jump in revenue, thanks to strength in the investment banking business, Solomon's old orbit.